Do I have something I can fight for?

M

matastephanie

Guest
Jurisdiction
California
Hello,

Before I go forward with this, I would like to make sure I have something firm and legitimate to be able to sue for. So I took out my first car by myself, no cosigner, and was asked to put $500 down on April 6th. I wrote a check and it is not to be processed until April 26th. Well yesterday I was told by the finance department that they cannot finance me and I would have to give the car back. I obviously do not want to do that as I believe they should have done this before letting me drive off with a new car. Another thing, when I signed the contract, I was told the car had been lowered in price to $17,000 and yesterday I was informed by the finance manager that that was not true. In fact, the car was at $19,500 (rough estimate). After trying to work things out, he recommended I either get a cosigner (which I can't do as I have no one to cosign for me), OR I pay another $500 towards the down payment, have my interest go up bringing my payments up by $25 ($425/mo), and they had "taken a loss" by lowering the price down to a supposedly $16,500. Now, the payments I have no issue with. I am a bit livid at the fact that they want me to sign a new contract after we came to an agreement. I also can not afford to put another $500 down right now.. So can I do something.. anything about this?

Thank you much!
 
matastephanie said:
Hello,

So can I do something, anything about this?

Thank you much!
Click to expand...

Yes, you can start by reading the documents you signed and received as you gave the dealer the $500.

Why?

Because, somewhere buried among ALL those ever so boring words, you'll find what I'm about to reveal to you.

I'll paraphrase, and get to the final answer quicker.

If the dealer can't secure financing, the deal is off.
If the deal is off, there is no deal.
Why?
The deal was contingent upon the dealer being able to secure financing for you.
Apparently the dealer was unable to secure financing unless you come up with another $500.
You say getting another $500 is impossible, but even if you could, the interest rate and repayment terms are impossible.

There is no deal.
If there is no deal, you must return their car.
If you fail to do that within the next 24 hours, or whatever date the dealer sets, the car will be repossessed or reported stolen.
Either way that goes, it'll further harm your credit.

The real surprise is waiting when you return the car.
I've been the bearer of so much bad news, already mate, so I'll stop now to avoid burdening you with more bad news.

Let us know how this ends, please. Thanks mate, good luck.
 
Read your contract carefully. It most likely allows for the dealer to do exactly what they are doing in the event financing isn't completed and for other specific reasons.

Your best bet may be to return the car, but in doing so you will likely be charged a usage fee for the time you had it, which would come out of any deposit you made. If you don't return the car it could be repossessed, and you don't want that to happen either.

It sounds as if you need to return the vehicle and find something more affordable.
 
Yep, yep, yep. Return the car as soon as possible. Ask them to return the deposit check. If there is no damage to the vehicle and few miles, you will probably get it back.
 
matastephanie said:
So can I do something.. anything about this?
Click to expand...

You can learn some very important lessons from this experience:

1 - Never trust car dealers, they are liars and thieves.

2 - Read, read, read, and understand every scrap of paper put in front of you before you sign it. Take it home and study it overnight if you have to. Get any promises or assurances in writing as part of the purchase contract. And never hand over any money without getting complete copies of all of the documents to take with you.

3 - Arrange for your own financing with a bank or credit union. Get an approval letter guaranteeing the maximum amount of the loan (based on your credit) and don't get scammed into buying something above that limit just because the dealer promises financing for a higher amount.

4 - If you elect dealer financing NEVER take the car home without a letter from the dealer's finance company on finance company letterhead signed by a financing officer confirming that your financing has been approved.

5 - If all you can scrape up is $500 for a down payment then you have no business buying any car that costs anywhere near $17,000 or even a fraction of that amount cause the first time you have trouble making a payment that car is gone and you are screwed.
 
I resent #1. Perhaps some are but you don't know every car dealer personally. No doubt some, perhaps many are liars but I've known plenty and none of them were thieves.
 
It's too late now but always be sure financing is approved (& in writing) before taking a vehicle home.
 

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